We don’t really have different regions. We have federal taxes, and like AUS we have states, so each state has its own wildly different rules on just about everything. Some localities (New York City is one) that also has its on tax structure. Kinda messy when you and work in different areas. Like I said, the IRS (US Tax Office) doesn’t care what your job title is, but when it comes to your business structure and employment status, then they like to get in your face about it. For example, lots of businesses avoid paying employment taxes by saying that their employees are independent contractors and leaving the tax burden on them instead. There’s a way for the employee to submit a proper employment status, though. A good CPA can help.

For the record, if I were living in AUS as a US Citizen, I would have to pay federal income tax to the USA, but I would be able to deduct any taxes that I pay to the country of my residence. That’s an overly simplified explanation, though, and we all know that there’s nothing simple about taxes.

I didn’t realise the US had split tax regions - but that does make perfect sense once I think about it. The Australian Tax Office is really sensitive about ‘creative’ jobs like writing, because they actually give out rebates and such to encourage more of it - like with their film industry fund. Plus there’s the added problem that most of my clients are international, not Australian……….. perhaps I should just quit and become a lady of leisure?

I haven’t been on VT in eons! It’s still a great site, though, and if I had the opportunities to travel more I’d probably visit more often.

Completely unrelated, but I just saw your Virtual Tourist profile and I am so signing up!!